AlabamaSB2922026 Regular SessionSenateWALLET

Real property; creation of the Alabama Property Protection Act of 2026, title fraud prevention

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 8 benefits, 0 costs, 2 mixed.

Faster title recovery for property owners

Beginning October 1, 2026, the circuit court where the property sits must schedule a preliminary hearing within 30 days after complaint service. This applies to complaints alleging a fraudulent property transfer. If the court finds an attempted fraudulent transfer from a plaintiff who previously held legal title, it must restore that title and rights. One petition can cover multiple parcels, and the state court office must provide simplified forms. Plaintiffs seeking to cancel a document recover court costs and reasonable attorney fees when the court finds the defendant fraudulently created it or caused its creation.

New agency help for defrauded owners

Beginning October 1, 2026, the Alabama Securities Commission can investigate covered land fraud and order repayment or void fraudulent transfers. It can compel evidence, recover enforcement costs, and impose civil penalties up to $100,000 per transaction. Affected parties have 30 days to appeal for a new circuit court review, using a certified hearing transcript. Without a timely appeal, complainants can petition to enforce the order and clear title; the court must act within 30 days. Utility infrastructure acquisitions are excluded; banks, credit unions, title insurers, and governments are exempt from fund-related civil penalties, but individual agents are not.

New payments for title fraud victims

Beginning October 1, 2026, the Alabama Title Fraud Recovery Fund can pay property owners for actual financial losses from title fraud. Owners must file a complaint with the Alabama Securities Commission, which sets the payment cap by rule. Payments exclude interest, court costs, and claims based on consent judgments—judgments agreed to by the parties. After a complaint and investigation, the Commission can send fraudulent or criminal transfer proceeds to the fund. Excluded proceeds include specified bank, credit union, title insurer, and government fees, premiums, and lender principal and interest. Forfeiture cases must start within four years after recording; knowingly withholding proceeds or filing frivolous delay lawsuits risks another $10,000 penalty.

Free property alerts where counties participate

Beginning October 1, 2026, the Alabama Securities Commission can fund statewide text or email alerts about recorded property documents. Probate judges can also create county alerts for documents recorded in an owner's name or registered address. County programs are optional, but any established service must be free and available to every property owner in that county. Failure to send an alert does not create liability.

Owners can clear fraudulent property records

Beginning October 1, 2026, affected people or entities can ask a probate judge to cancel or remove fraudulent liens, deeds, or other recorded documents. The written petition must be sworn, based on personal knowledge, and mailed to the filer or claimed interest holder. Additional proof of validity is due within 14 days after notice mailing; a petition not granted within 28 days is denied. Appeals are due within 28 days, and relief takes effect 28 days after order mailing or after appeals are final. Knowingly offering a materially false record with intent to defraud is a Class A misdemeanor, or a Class C felony when targeting a public servant's property or contracts with the specified fraudulent or intimidating intent.

Owners can remove interior property images

Beginning October 1, 2026, owners can request removal of public interior photos or videos from online real estate platforms. The property must not currently be listed for sale, and the current owner of record must make a written request. After verifying identity and ownership, the platform must remove the images from public view within 30 days. Platforms need not remove images without a request and can retain them for specified nonpublic purposes.

Stronger criminal protection against housing fraud

Beginning October 1, 2026, knowingly listing, advertising, renting, or leasing residential property without legal authority and with intent to defraud is a Class D felony. The law raises this offense from a Class A misdemeanor. Aggravated fraudulent sale or lease is a Class C felony when the offender receives related money or an owner is age 70 or older. The age protection also applies when someone age 70 or older jointly owns the property.

Safer notarizations with stronger identity checks

Beginning October 1, 2026, notaries can refuse acts that appear illegal, deceptive, coerced, or poorly understood by the signer. Remote electronic notarizations require two-way video, a notary physically in Alabama, and a signer in the United States. Identity checks require personal knowledge or two valid government IDs plus public or private data review. Participants must receive recording notice; recordings and required document, identity, ID-image, and date-and-time records must be kept seven years. Remote notaries must refuse when reasonable doubts arise about competence or free choice, technology is insecure, or images appear computer-generated; specified voting documents cannot be notarized remotely.

Online listings get checks and shields

Beginning October 1, 2026, platforms must obtain unexpired government photo ID and ownership proof before publishing listings contracted directly with owners. This applies when the property was not first listed through a licensed broker, brokerage, or multiple listing service. Platforms can use third-party verification services. Compliance with listing and image-removal rules creates a presumption of reasonable conduct that can be challenged; Commission action remains available. The law shields platforms from specified negligence claims involving syndicated listings or intermediary failures, and protects providers merely connecting users to content outside their control.

Property agents face new identity checks

Beginning October 1, 2026, licensed agents and brokers need government ID and ownership records from unknown sellers who are absent. Without those records, they cannot agree to sell or lease the property. Settlement agents must validate identity documents and verify sellers before transfers of vacant or non-owner-occupied Class III property without a security instrument. Settlement agents must keep compliance records for five years; related civil lawsuits must start within four years after recording. Documented compliance gives real estate and settlement agents a defense against liability under these rules.

Sponsors & Cosponsors

Sponsor

Arthur Orr
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 367 • No: 1

House vote • 4/9/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1335

Yes: 102 • No: 0

House vote • 4/9/2026

Motion to Adopt - Adopted Roll Call 1334

Yes: 103 • No: 0

Senate vote • 4/9/2026

Gudger motion to Concur In and Adopt House Amendment - Adopted Roll Call 1308

Yes: 33 • No: 0

Senate vote • 3/17/2026

Givhan motion to Adopt - Adopted Roll Call 896

Yes: 34 • No: 0

Senate vote • 3/17/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 897

Yes: 34 • No: 0

Senate vote • 3/12/2026

Orr motion to Adopt - Adopted Roll Call 864

Yes: 31 • No: 0